Gold Prices Surpass $4000 On Global Uncertainties

Gold prices surged past $4,000 per ounce as investors sought safe-haven assets amid mounting global uncertainties. During intra-day trade prices touched a high of $4050. This saw gold prices in the Delhi spot market move up to Rs 1,26,600 per 10 gm against Rs 1,23,400 in the previous session. In the Multi Commodity Exchange, gold prices went up to Rs 1,23,080.

According to Kedia Commodities, the US government shutdown has delayed critical economic data, complicating assessments of the nation’s economic health, while traders anticipate rate cuts from the Federal Reserve in October and December. Political developments in France and Japan are adding further pressure on global markets. Gold has been rising with the support from trade tensions, geopolitical unrest, and a weaker US dollar. Central banks remain active buyers, and gold-backed ETFs recorded their highest monthly inflows in more than three years in September.

Gold has gained 44.5 per cent since last Diwali, while silver has appreciated 73.2 per cent during the period.

“With the volumes coming down significantly in the bullion market, gold has turned risky in the mid-term. Price correction of 10 -12 per cent can be expected. However, the long-term prospects remain,” said Ajay Kedia, MD, Kedia Commodities.

Goldman Sachs has raised its December 2026 gold price forecast from $4,300 to $4,900 per ounce. The investment bank expects the added gains will be driven by strong Western exchange-traded fund (ETF) inflows and sustained central bank buying.

Meanwhile, silver prices in the international market moved closer to $49 per ounce, which is a 14-year high. In the Delhi spot market, silver was priced Rs 1,57,000 per kg.

Apart from the safe haven demand, robust physical demand from the solar and electronics sectors also supported silver prices.

“We expect silver prices to move up to $72 per ounce in the next two years,” said Kedia.